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How Republicans Plan to Avoid Taxmageddon


With the possibility of “Taxmageddon” looming over United State’s taxpayers, House Republicans are trying to get a head start in overhauling the tax code. If Congress fails to act before December 31st, 2012, the Bush era tax cuts are scheduled to expire. This would cause a slew of tax increases on Americans. Taxes will be raised on investment income, estates and gifts, and earnings at all levels. The marriage penalty for joint filers will return, the child credit will drop $500, and the rate everyone pays on the first $8,700 of wages will jump to 15%.  The Social Security payroll tax that Congress voted on in February will expire, and the new Medicare taxes that are a part of Obamacare will be imposed upon anyone who makes more than $200,000. All of these taxes could potentially take away $500 billion out of the economy in 2013 and are set to occur after the November 6th election.

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